What is Enterprise Business Planning (EBP)?
Enterprise Business Planning (EBP) is the evolution of Integrated Business Planning, to suit today’s markets. Companies are under more pressure than ever from shareholders to deliver growth and increased margin. At the same time consumers are becoming much more powerful aided both by social media and technology that continuously match their need to relevant products and services. They are ever more demanding on price, choice and convenience, but are short on loyalty, This creates an environment in which organisations must adopt an increasingly customer-centric approach, re-align their value chains and leverage the latest technology, if they are to deliver enterprise goals and remain competitive.
Oliver Wight has been at the forefront of driving business transformation for 50 years and has driven significant innovation to support businesses in delivering competitive advantage. Throughout its history Oliver Wight has led change through knowledge transfer and process design. This is because successful transformation hinges on people’s ability to grasp change and understand how to work within new systems and processes. This fundamental belief in people and process remains as a core Oliver Wight principle, even though the technology that surrounds the business world and the speed of change have both radically changed.
EBP develops the principles originated by Oliver Wight’s Sales & Operations Planning and more recently, Integrated Business Planning (IBP) to provide a 21st Century solution for driving business transformation and delivering competitive advantage. In fact, EBP is not a single solution, but a set of super solutions incorporating digital planning capability, designed to link global strategy directly to execution, across multiple time horizons. It is defined as: ‘A common planning framework that allocates scarce resources, aligned with company strategy, dynamically adjusting to market demands, by integrating, Sales, Marketing, Finance and Supply Chain to consistently win profitably in the market.’
Who is EBP for and what are the business benefits?
EBP is for those organisations that have already implemented IBP to a ‘Capable Class A’ level. Like IBP, EBP breaks down functional silos and aligns the business behind a single plan. And as with IBP, operational planning is rolling and continuous, reviewed in a monthly cadence of meetings for product and service, demand, supply, integrated reconciliation and management review, thus allowing business leaders to identify future performance gaps and make effective decisions to close them in plenty of time.
But EBP also extends the benefits of IBP deeper, higher and wider into the organisation. It provides full integration with an organisation’s business planning and execution, with its group, market and brand strategies, as well as brand planning and target setting. Crucially, EBP extends the forward planning horizon to a minimum of 36 months and ensures commercial plans progress in step with shorter-term supply constraints as well as medium- to longer-term flexibility.
In an era of digital disruption, EBP leverages the latest technology, including artificial intelligence, for reporting, demand sensing, scenario planning and modelling and analytics. It provides transparency across financial, commercial and supply chain plans, with high-performance matrix teams interpreting and managing data to deliver desired outcomes.
For EBP and the execution framework to work together successfully, the integration between planning horizons is as important as the integration between functions, concurrently orchestrating the top-down and, bottom-up, with the end-to-end connections of the value chain.
By creating these links that give management a clear end-to-end view of the supply chain, EBP enables a unique rolling plan that not only aligns markets, supply chain, operations and finance, but also facilitates corrections across the horizon. Subsequently, companies can integrate go-to-market and route-to-market activities into a single commercial plan, allowing them to anticipate and meet the ever-changing needs of consumers.
The world’s high-performing businesses that implement EBP, collaborate across functions to sense, respond to, and ultimately shape demand. They are able to create go-to-market strategies segmented by customer, market, and channel, and integrate them with route-to-market execution that is agile, flexible and, above all, profitable.